Editor's note: This article has been corrected to say the cause of the Happy's Pizza fire was undetermined after an investigation.

An Ann Arbor-based development company plans to build a project on a South Main Street property where a Happy’s Pizza was destroyed by fire in January.

Dan Ketelaar’s Urban Group Development is partnering with the Lossia family, the longtime owners of the property at 600 S. Main, to explore the best redevelopment options for the site. The two parties are in a due diligence period, which is expected to end in September or October.

Dan Ketelaar is the developer behind the six-story apartment project known as 618 South Main that is under construction immediately south of the Happy’s Pizza site. 618 South Main is expected to open in spring or summer 2015.

“My family, the Lossia family, as well as the Urban Group Development company have reached an agreement for the redevelopment of the site at 600 South Main. What we have discussed is the appropriate vision for the space, for the property,” said Renee Lossia.

Specific details on Ketelaar’s vision for the site are not yet available. Ketelaar said he plans to first analyze the property and market conditions.

“It’s a nice site,” he added.

The 0.13-acre property is located in the city’s step-down D2 zoning with a building height limit of 60 feet. It has a 2014 assessed value of $230,200. The property is about three blocks south of East William Street.

Lossia said her family would still retain control of the property. She said the new development would not be an extension of the 618 South Main apartment project.

“It’s going to be an independent site,” she said. “The due diligence period, of course, is to explore what can and should be redeveloped. Both the Urban Group and the Lossia family share a vision for what we’d like to see there and that’s why we’ve chosen to move forward with the Urban Group.”

The 618 South Main apartments site, pictured in June, is adjacent to the former Happy's Pizza site.Ryan J. Stanton | The Ann Arbor News

Construction crews have worked this summer to clear the property of the charred Happy’s Pizza building remains. The cause of the fire was undetermined.

Lossia said ongoing work on the site is related to clearing and cleaning the property.

“(Crews) are clearing and cleaning of it and just making sure that everything is the way it needs to be for the city. It’s more just grading and securing the site based on city requirements and for aesthetic reasons for the community,” she said.

The Lossia family has owned the property for more than 30 years. Renee’s father, Richard Lossia, operated the Wolverine Market – a deli, wine, cheese and liquor store – on the property until the mid-1990s. When Richard retired due to a health related issue, Ameritech occupied the building for about five years, until a Happy’s Pizza franchise opened about seven years ago.

“We have every reason to believe that this relationship with Urban is going to complete its due diligence with all the necessary findings to re-establish the property in a way we are all – both the community and Ann Arbor, as well as our family and Dan (Ketelaar) – excited to have as part of the Ann Arbor sightline.”

Lizzy Alfs is a business reporter for The Ann Arbor News. Reach her at 734-255-2638, email her lizzyalfs@mlive.com or follow her on Twitter.